The 237-year-old institution is in the middle of a major restructuring, although it is projected to remain in the red this year.

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Analysts say the postal service is making the change because it has little other choice.

"It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," James O'Rourke, a professor of management at the University of Notre Dame, told the Associated Press.